the power of community - lanternfinancial.com · in your “bang for the buck” decision to join...

The Power of Community

Fall 2014

� � � � ��

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Points of Interest Fall 2014� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 1

� � � � ��

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

2520 Venture Oaks Way, Suite 150Sacramento, CA 95833

(916) 239-4080 – phone • (916) 924-7323 – [email protected]

www.californiamortgageassociation.com

Points of Interest is published by the California Mortgage Association, a voluntary trade association serving California mortgage and trust deed brokers and lenders.

CMA HEADQUARTERS STAFF

2013-2014 BOARD OF DIRECTORS

Odell Murry – PresidentMAI Financial Services, Inc.

Stephen Pollack – Vice PresidentAnchor Loans, Inc.

Mark Forbes – SecretaryF.E. Forbes Company, Inc.

Steve Belleville – TreasurerReal Estate Lending Group, Inc.

John Graziano – Past PresidentBaySierra Financial, Inc.

Steve Anderson – DFI Funding, Inc.George Eckert – The Money Brokers

Noah Furie – Budget Mortgage CorporationGlenn Goldan – ReProp Investments, Inc.

Charles Hershson – Fidelity Mortgage Lenders, Inc.David Herzer – Herzer Financial Services, Inc.

Elizabeth Knight – PLM Lender ServicesStephen Leidner – Lantern Financial Corporation

Joff rey Long – Southwestern MortgageLori Randich – Redwood Mortgage Corporation

Pam Sosa – Standard Mortgage Financial Services, Inc.Richard Temme – R.C. Temme Corporation

Richard Wachter – Wachter Investments, Inc.

Michael Arnold & Michael Belote, Esq.Legislative Advocates

Phillip Adleson, Esq. Brad Rogerson, Esq. Legal Counsel Securities Counsel

Lexi HowardExecutive Director

John BerkowitzPublications Director

Jen Gross, CMPMeeting Planner

Michael CochranWebmaster / IT Manager

Isis HumphreyMembership / Advertising / Exhibits

Tricia Schrum, CPAAccounting

Inside This Issue From the President .................................................2

From the Editor ....................................................... 3

Sacramento Summary ...........................................5

Vendor Management: Not Just for Consumer Lenders Anymore ................................7

Local Points of Interest ........................................13

2014 Fall Seminar .................................................. 14

Summer Seminar Photos .................................... 18

Summer Seminar Sponsors ............................... 20

Summer Seminar Vendors ..................................21

PAC Contributors .................................................. 23

Delinquent Loans – What Are the Tax and Accounting Implications of the Collection Choices Made by Lenders? ..................................27

Construction Lenders Go Down in Flames ... Again ....................................................................... 29

Technology Update ...............................................31

Stricktly Strickland ............................................... 32

Know Your Board ................................................. 33

Welcome New Members .....................................41

From the PresidentBy Odell Murry • 2013-2014 CMA President

Page 2� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Fall 2014 Points of Interest

t is often said that California is a country in itself, and with good reason. Not only do we do things differently in California,

but if our state were a country, we would be ranked the eighth largest economy in the world, behind France and England, according to the Center for the Continuing Study of the California Economy.

It isn’t always easy navigating such a large economy, and California often ends up in the news for its fiscal stumbles and budget squabbles. And, although California may do things differently, we are not an island, so when the US economy sneezes, California catches a cold.

When the real estate-fueled economic recession struck in 2008 we faced massive upheaval, including California’s real estate industry. Because of the turmoil in many sectors of the state’s economy, California dipped in its ranking among the world’s economies, and was forced to share its number eight ranking with Russia and Italy. Although such a comparison between a state’s economy and a country’s economy is really apples to oranges, I’m sure that deep down, some business leaders were unhappy with having to share economic kudos

The Power of Community

with countries not known for their fiscal prudence or transparency.

Business leaders from many different economic sectors had to think outside the box and collaborate to get this country’s economy out of the ditch. Rivals shared their ideas to develop innovative plans, the US government resorted to a show of extraordinary powers to boost the economy, and CMA members rallied together to ensure that a more cohesive voice was presented to lawmakers regarding the mortgage industry.

CMA members provided capital that pumped billions of dollars into California’s economy during our State’s financial crisis.

Despite this volatile lending landscape during the economic crisis, our members did themselves proud. At a time when the US real estate market was in freefall and traditional credit sources had all but dried up, it was up to private lending sources to fill the gap. Together, we rapidly broadened our lending focus to more business-purpose lending, providing the capital that would pump billions of dollars into an economy on the brink.

A husband and wife owned and operated a live theater near their home in Orange, California. Their theater is a unique boutique theater that attempts to nurture the creative and spiritual soul. They wanted cash to purchase and upgrade sound, staging, and other technical equipment for the theater, but because the couple was largely self-employed, had a high debt-to-income ratio, and an inconsistent revenue stream, they found it impossible to get cash out of their owner-occupied home. CMA member Sandy MacDougall of Mortgage Vintage, Inc., was able to make a business-purpose cash out second trust deed loan to help the couple continue their dream. After the loan, Sandy even took his family to see a play at the theater.

Our efforts paid off, and the California real estate market is now rebounding. Home sales experienced double-digit growth between May 2011 and May 2012, and this resurgent real estate market goes well beyond a few select cities as seen in other states – California is experiencing a statewide rebound.

continued on page 36


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 3

From the Editor

ollo May wrote that “Human freedom involves our capacity to pause between the stimulus and

response and, in that pause, to choose the one response toward which we wish to throw our weight.”

We members of the CMA are industry movers and shakers. It does not come naturally to us to pause. We are out front. We lead by moving forward. On a daily basis we inject capital into local economies and we add measurable value to the community at large. We are entrepreneurs on whom many depend for livelihood. We have managed to succeed in an industry where uncertainty and fear (and defeat) are rampant. We accelerate and excel where many hesitate and fail.

Incredibly, we fi nd a way to juggle all of the responsibilities that come with being business leaders. Many of us do this while simultaneously raising families and serving as coaches, mentors and community volunteers. Indeed, we CMA members embody the lament: There are only so many hours in a day.

Added to our already full plates are the activities that accompany our commitment to the CMA. We voluntarily pool our resources to help eff ect policy change, and we are encouraged to gather quarterly to meet with our industry peers, to establish best practices and to reinforce standards of integrity among our members.

The decision to pause our busy work and home lives to attend (or not) the CMA seminar is influenced by many critical factors, and the reasons members give for opting out are most often related to some version of “bang for the buck.” That is, the

commitment of time and money required to attend might not result in an immediate return in the form of new business contacts or new information.

The truth is, the opportunity to network and the educational content are truly excellent reasons to attend the CMA seminar, but attending for the pause itself is worthy of your consideration:

“In bullfighting there is an interesting parallel to the pause as a place of refuge and renewal. It is believed that in the midst of a fi ght, a bull can fi nd his own particular area of safety in the arena. There he can

reclaim his strength and power. This place and inner state are called his querencia. As long as the bull remains enraged and reactive, the matador is in charge. Yet when he fi nds his querencia, he gathers his strength and loses his fear. From the matador’s perspective, at this point the bull is truly dangerous, for he has tapped into his power.” *

In your “bang for the buck” decision to join us in Vegas, be sure to factor in the value of querencia.

*Tara Brach, Radical Acceptance: Embracing Your Life with the Heart of a Buddha.

bySteve Pollack

Editor, Points of Interest

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


SACRAMENTO SUMMARYBy Michael J. Arnold & Michael Belote, Esq.

Legislative Advocates

� � � � ��

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 5

Under the state constitution, the California legislature must adjourn by midnight August 31 in even-

numbered years. At that moment or before, the Assembly and Senate must gavel to an end the 2013-2014 two-year legislative session. No bills will carry over from this year to the next; all bills not passed by midnight are forever dead and must be reintroduced in the 2015-2016 session, with a whole raft of new legislators.

Incredibly, there were years when the houses of the legislature literally stopped the clock just prior to midnight, pretending that the witching hour had not yet arrived. Then someone sued over the practice, so now midnight means midnight. At least we can now agree on what time it is!

After adjournment, Governor Brown will have until the end of September to sign or veto the hundreds of bills sent to him in the fi nal days of session. In most years, 700-900 new laws are enacted. Most will take eff ect on January 1, 2015, and changes of interest to CMA will be detailed at the fall seminar in Las Vegas.

As this column is written, there are mere hours remaining in the legislative session. Key society-wide issues such as a water bond for the November ballot have been resolved, and a relative handful of controversial issues remain to be decided. Where prior sessions have seen mortgages and foreclosures dominate the agenda, this year employment-related bills have been much of the focus.

Why is this important to CMA? The answer is that one of the most controversial employment bills is AB 2416, which would

authorize employees or former employees to record “wage liens” against all real property of employers, and some personal property, for unproven allegations of unpaid wages. This very complex bill is patterned to some degree on existing mechanic’s lien laws.

Proponents argue that all too often, employees who obtain decisions entitling them to collect lawful wages are unable to do so from companies who go out of business, reorganize under diff erent names, and ultimately avoid their obligations. Why should a subcontractor be able to lien real estate for work performed or material supplied, but not an employee who provided services to a business?

Labor unions have made the wage lien bill one of their top priorities for the legislative year. At the same time, an absolute mountain of business opposition coalesced to defeat AB 2416, including CMA. While general business groups decried what they perceived as the basic unfairness of permitting employees to leverage employers to coerce payment for invalid demands, real estate groups argued that improper liens, unreleased liens, litigation over liens, and the like would irreparably clog title to real property and impede commerce.

On August 28, AB 2416 came up for a vote on the Senate fl oor, and needing 21 votes for passage, failed on a vote of 13-15. In legislative terms, not a close vote at all. Again as this column is written, with only hours remaining, there is discussion of yet further amendments to address opposition, in a last-gasp eff ort to keep the bill alive. The procedural hurdles would

be very substantial and the odds are long for proponents, but stranger things have happened. This is why lobbyists stay in the Capitol until the gavel actually bangs, ending the session.

One issue which clearly will not come up in the fi nal hours relates to the so-called

“widows and orphans” question under the Homeowner’s Bill of Rights. The question is the degree to which lenders can, or perhaps must, communicate with and accommodate survivors of borrowers who had rights under HOBR. After many hours of discussion, it was ultimately agreed that the issue was too complicated for resolution this late in the session; it is quite likely to be revisited in 2015.

Of the hundreds of bills which will be signed by Governor Brown, very clearly a number of them will be of interest to CMA members. See you in Las Vegas!

Real Estate Bill At Center of Storm

Fall 2014 Points of InterestPage 6 Fall 2014 Points of InterestPage 6 � � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


Points of Interest Fall 2014 Page 7Points of Interest Fall 2014 Page 7Points of Interest Fall 2014� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 7

continued on page 8

Vendor Management: Not Just for Consumer Lenders Anymore

DEFINITION OF VENDOR MANAGEMENTVendor management refers to a mortgage broker or lender’s vetting, contracting with, and oversight of third party vendors. Third party vendors are third parties whom a mortgage broker or lender hires to carry out certain duties or responsibilities on the broker or lender’s behalf. Some examples of vendors are other mortgage brokers, title companies, escrow companies, appraisers, loan servicing companies, “cloud” server information technology companies, etc.

VENDOR MANAGEMENT CAN KEEP BROKERS AND LENDERs OUT OF TROUBLEPro p e r ve n d o r mana g e m e nt f o r mortgage brokers and lenders is critical to maintaining customer satisfaction (e.g. repeat customers) and keeping out of trouble, both from regulators and from litigants. When a borrower or investor gets upset because of actions or inactions

of a third party vendor, they will join the mortgage broker or lender in the complaint to the regulators or to the courts. The broker or lender could be sued for failure to properly investigate or oversee the vendor. These failings could also be raised as part of a failure to fulfi ll the broker or the lender’s fi duciary duty, if one exists or is alleged to exist. For example, many California private mortgage lenders transferred their servicing of consumer loans to third party servicers after the Homeowner Bill of Rights and Dodd-Frank went into eff ect. Don’t be lulled into believing that they will be “off the hook” if the third party servicer makes mistakes in the servicing. Even if the broker or lender no longer arranges or makes consumer loans, they could still be possibly be held liable for the mistakes of a third party servicer for failing to do proper vendor management

byMichelle R.

Rodriguez, Esq.Woodland Hills

Mortgage

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


Vendor Management – continued from page 7

Vendor management is an area of special concern for the Consumer Financial Protection Bureau (“CFPB”),1 and the CFPB has instituted enforcement actions against several large financial institutions for the failure of the institution to monitor their vendors’ ability to follow applicable laws and regulations.2 The CFPB’s rules are fairly straightforward, and provide a good, basic plan for handling vendors – even for companies that may not be covered by the CFPB. Therefore it behooves all financial institutions, mortgage brokers, and lenders, especially those governed by the CFPB, to learn the CFPB’s steps of proper vendor management.

CFPB AUTHORITY AND “COVERED PERSONS”The CFPB has broad authority to oversee covered persons, including the authority to litigate civil actions against covered persons,3 hold administrative proceedings,4 and refer matters to the Attorney General for criminal proceedings.5 As part of its enforcement authority, the CFPB has the ability to seek rescission or reformation of contracts, refund of money or return of real property, restitution, disgorgement or compensation for unjust enrichment, payment of damages, public notification regarding the violation, limits on the activities of the person, and civil money penalties.6 “Covered Persons” are “(A) any person that engages in offering or providing a consumer financial product or service; and (B) any affiliate of a person described in subparagraph (A) if such affiliate acts as a service provider to such person,”7 and the CFPB has the authority to supervise any covered person who

“offers or provides origination, brokerage, or servicing of loans secured by real estate for use by consumers primarily for personal, family, or household purposes, or loan modification or foreclosure relief services in connection with such loans....”8

VENDORS ALSO SUBJECT TO SUPERVISION The CFPB also has authority to supervise vendors, or as they name them, “service providers.” The term “service provider” means any person that provides a material

service to a covered person in connection with the offering or provision by such covered person of a consumer financial product or service, including a person that (i) participates in designing, operating, or maintaining the consumer financial product or service; or (ii) processes transactions relating to the consumer financial product or service (other than unknowingly or incidentally transmitting or processing financial data in a manner that such data is undifferentiated from other types of data of the same form as the person transmits or processes). The term “service provider” does not include a person solely by virtue of such person offering or providing to a covered person (a) a support service of a type provided to businesses generally or a similar ministerial service; or (b) time or space for an advertisement for a consumer financial product or service through print, newspaper, or electronic media.9 Vendors include brokers, realtors, real estate developers, appraisers, underwriters, home improvement contractors, and private mortgage insurance companies.10

GOOD VENDOR MANAGEMENT Even if a company is not supervised by the CFPB, the CFPB’s steps of proper vendor management are instructive. To quote the CFPB, they expect “nonbanks to have an effective process for managing the risks of service provider relationships.... To limit the potential for statutory or regulatory violations and related consumer harm, supervised banks and nonbanks should take steps to ensure that their business arrangements with service providers do not present unwarranted risks to consumers.”11 These steps should include, but are not limited to:

(a.) due diligence in selecting vendors,

(b.) review vendor’s policies and procedures,

(c.) contractual provisions that help ensure compliance with applicable law and allow consequences for non-compliance,

(d.) monitor the vendor, and

(e.) take prompt corrective action when needed.12 The CFPB advocates a

risk-based approach – looking at each service provider relationship, and determining the risks of harm to consumers.13 So a one-size-fits-all approach doesn’t work. What is appropriate oversight for one vendor may be inadequate for another. The level of oversight should be tailored to address the risk of harm to consumers. Since the CFPB has set forth these steps, they can be a benchmark even for companies not subject to CFPB oversight. The CFPB’s five steps are an all-around good blue-print for proper vendor management.

DUE DILIGENCEDue diligence could include looking at the people on the vendor’s staff, and see if they have the education, background, and expertise to comply. Other possible actions could be verifying appropriate licensing of the vendor, checking for relevant litigation or administrative action against the vendor, and checking the vendor’s references. In the CFPB’s Vendor Management Bulletin, it says simply “Conducting thorough due diligence to verify that the service provider understands and is capable of complying with Federal consumer financial law.”14

REVIEW VENDOR’S POLICIES AND PROCEDURES The second step in managing vendors is “requesting and reviewing the service provider’s policies, procedures, internal controls, and training materials to ensure that the service provider conducts appropriate training and oversight of employees or agents that have consumer contact or compliance responsibilities.”15 For this step, the CFPB has provided guidance in its Supervision and Examination Manual: “Request and review ... documents demonstrating that service providers who have consumer contact or compliance responsibil ities are appropriately trained.”16 Such documentation can include policies, standards, schedules, and records of completion for compliance-specific training. Also, companies can

“Review compensation arrangements,

continued on page 9


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 9

including incentive programs for ... service providers.”17

CONTRACTUAL PROVISIONSThe next step in the vendor management guidelines is “Including in the contract with the service provider clear expectations about compliance, as well as appropriate and enforceable consequences for violating any compliance-related responsibilities, including engaging in unfair, deceptive, or abusive acts or practices.”18 The CFBP’s Supervision and Examination manual gives a little more detail on their expectations, saying, “Obtain and review a sample of contracts with agents or service providers to whom the financial institution discloses account numbers for use in connection with marketing the institution’s own products or services. Determine whether the institution shares account numbers with nonaffiliated third parties only to perform marketing for the institution’s own products and services. Ensure that

the contracts do not authorize these nonaffiliated third parties to directly initiate charges to customer’s accounts.”19 A special area of concern for the CFPB is fair lending issues, as shown by its special mention of fair lending issues throughout its Supervision and Examination Manual. With respect to vendor contracts, the Supervision and Examination Manual states, “Also request documentation of any fair lending requirements imposed on, or commitments required of, any of the institution’s service providers.”20 Here are some ideas for types of contractual provisions that beneficial for any vendor contracts:

1. Definitions

2. Reps & Warranties

3. Background checks

4. Liability & Insurance

5. Technology standards

6. Security of data

7. Confidentiality

8. Indemnifications & set-offs

9. Termination of the contract

Again, these ideas work as well for non-CFPB-supervised companies, as well as those supervised by the CFPB.

MONITORING VENDORThe fifth step in the vendor management guidelines is “establishing internal controls and on-going monitoring to determine whether the service provider s complying with Federal consumer financial law.”21 The CFPB gives a little guidance on their expectations, stating that the CFPB examiner should “[d]iscuss with the compliance officer or monitoring manager the coverage of service providers that have contact with consumers.”22



� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


The CFPB also expects the company to have “developed appropriate training and monitoring policies and procedures for ... service providers, including: a) monitoring outbound calls to consumers to ensure compliance with applicable law and internal policies; b) ensuring service provider compliance with legal obligations; and c) regular evaluations of ... service provider performance.”23 Some ideas for implementing this step are:

1. Periodically requesting updated policy & procedures from vendors with whom the covered person has an on-going relationship;

2. Requesting and reviewing loan originator compensation agreement between a mortgage broker and his loan agents;

3. Periodically asking for copies of the vendor’s training schedule and materials; and

4. Performing an on-site visit to the vendor and listing in on phone calls, if appropriate, and asking their employees questions to see if they know the policies and procedures.

CORRECTIVE ACTION WHEN NEEDEDThe last step is “taking prompt action to address fully any problems identified through the monitoring process, including terminating the relationship where appropriate.”24 Another area on which the CFPB is particularly focused is consumer complaints.25 The CFPB expects that

“complaints involving service providers or other third parties referring business to the supervised entity receive prompt and appropriate handling and follow-up by the entity.”26 Some examples of corrective action:

1. A letter or e-mail detailing the problem and the solution, and following up with the vendor to make sure that the solution is carried through to completion;

2. Response to a complaining party, detailing any investigation into the complaint, and any remedial action taken;

3. Refund of wrongfully charged fees to the consumer;

4. Termination of the relationship with the vendor.

UNFAIR, DECEPTIVE, OR ABUSIVE ACTS AND PRACTICESOne of the CFPB’s special mandates from Congress was to oversee the prevention of unfair, deceptive, or abusive acts and practices (UDAAP) against consumers.27

The CFPB specifically addresses covered persons responsibilities towards vendors with respect to UDAAP concerns: “Evaluate how the entity monitors the activities of

... third-party contractors ... vendors, and service providers to ensure they do not engage in unfair, deceptive, or abusive acts or practices with respect to consumer interactions. Interview employees and

third parties, as appropriate. Specifically, consider whether: a) The entity ensures that ... third parties who market or promote products or services are adequately trained so that they do not engage in unfair, deceptive, or abusive acts or practices; b) The entity conducts periodic evaluations or audits to check whether ... third parties follow the entity’s training and procedures and has a disciplinary policy in place to deal with any deficiencies; c.)The entity reviews compensation arrangements for ... third-party contractors, and service providers to ensure that they do not create unintended incentives to engage in unfair, deceptive, or abusive acts or practices, particularly with respect to product sales, loan originations, and collections; d) Performance evaluation criteria do not create unintended incentives to engage in unfair, deceptive, or abusive acts or practices, including criteria for sales personnel based on sales volume, size, terms of sale, or account performance; and e) The entity implements and maintains effective risk and supervisory controls to select and manage third-party contractors and service providers.”28

For those companies not supervised by the CFPB and who might think that the

“UDAAP” rules don’t apply to them – think again. Most states have some kind of unfair & deceptive acts and practices law. So just because a company may not be covered under the CFPB’s UDAAP rules, they are likely covered under the state rules. And the principals and ideas stated above for the CFPB’s UDAAP rules would apply just as well to the state rules.

TOO EXPENSIVE TO IGNOREIn going over the steps for proper vendor management, above, many companies may think that the steps are too expensive to implement. But after a careful review, I believe that most companies will realize that they are already doing many of the oversight activities mentioned above – just not in as part of a formal, coherent plan. And every single idea is not appropriate for every company and every vendor in every circumstance. It will take the dedication




�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 11


of time to do a risk assessment of the company’s vendors, draft a written plan, and implement. The lawsuit or regulatory penalty that a company avoids by properly investigating and overseeing vendors far outweighs the costs of proper vendor management.

Endnotes1 Consumer Financial Protection Bureau

Bulletin 2012-03 (April 13, 2012).

2 American Express Bank, Administrative Proceeding File No. 2012-CFPB-003 (2012), Discover Bank, Administrative Proceeding File No. 2012-CFPB-005 (2012), JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A., Administrative Proceeding File No. 2013-CFPB-0007 (2013).

3 12 USC 5564 (2014).

4 12 USC 5562 (2014).

5 12 USC 5566 (2014).

6 12 USC 5565(a)(2) (2014).

7 12 USC 5481(6) (2014).

8 12 USC 5514(1)(A) (2014). In addition to the activity stated, the CFPB also has supervision authority over a covered person who (B) is a larger participant of a market for other consumer fi nancial products or services, as defined by rule in accordance with paragraph (2)[of 12 USC 5514]; (C) the Bureau has reasonable cause to determine, by order, after notice to the covered person and a reasonable opportunity for such covered person to respond, based on complaints collected through the system under section 5493(b)(3) of this title or information from other sources, that such covered person is engaging, or has engaged, in conduct that poses risks to consumers with regard to the off ering or provision of consumer fi nancial products or services; (D) off ers or provides to a consumer any private education loan, as defi ned in section 1650 of Title 15, notwithstanding section 5517(a)(2)(A) of this title and subject to section 5517(a)(2)(C) of this title; or (E) off ers or provides to a consumer a payday loan.

9 12 USC 5514(e) and 12 USC 5481(26))

10 CFPB Supervision & Examination Manual v. 2 at 305 (October 2012).

11 CFPB Bulletin 2013-03

12 Id.

13 Id.

14 Id.


16 CFPB Supervision & Examination Manual v. 2 at CMR-8 (October 2012).

17 Id. at 112.



20 Id. at 305.



23 Id. at 116


25 12 USC 5534 (2014).


27 12 USC 5531 (2014).


� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �



�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 13

ear Fellow CMA Members,

Our next seminar takes place in Las Vegas, a city that in the last few years has transformed itself from the world of gambling to the world of indulgent culture.

On the Strip in Las Vegas, everyone knows the fi nest places to dine – just name some of the most globally-recognized chefs in the world and you will fi nd them:

Joel Robuchon, Guy Savoy, Alain Ducasse, Thomas Keller, among a laundry list of others.

However, my favorite spots to dine are “Off The Strip.” My long time favorite is Lotus of Siam. It was also the James Beard Foundation’s favorite in 2011 when it awarded Chef Saipin Chutima the “Best Chef” in the Southwest region of the United States. Like most great places of food culture, you will fi nd this restaurant in a strip center. Any lack of ambiance, the food and the wine list will make up for. The wine list is a tome of world-class wines from around the globe at prices that will make you aghast. With these fi ne wines, you will also have the opportunity to indulge in the most satisfying Thai cuisine that you will ever experience, next to eating in Southeast Asia or Jitlada in Los Angeles.

Start your journey through Southeast Asia by ordering the Som Thum, the Thai Papaya Salad, a classic dish that consists of green papaya, chili, tomato, crushed peanuts, mixed with lime juice, fi sh sauce and sugar. Lotus of Siam’s subtle sweet version of Pad Thai is not to be missed – stir-fried thin rice noodles with eggs, green onions, bean sprouts and chopped peanuts on the side. I usually add shrimp to my Pad Thai order.

The shining star of this Thai experience is the Garlic Prawns. Never have I had deep-fried prawns where the shells are removed from the shrimp but still attached at the ends for eating. Analogous to a Sushi Chef frying the head of the sweet shrimp for the Japanese version of a French Fry, this is the Thai version. Chef Saipin sautés the prawns in a special garlic sauce, topped with ground pepper. For an even more indulgent version of this variation (except for eating the shells), order the lobster but make sure you have plenty of company to help you fi nish it. The other standing star is the

Sea Bass with Ginger. Chef Saipin delicately steams the sea bass topped with their special ginger sauce.

Leaving Lotus of Siam after this deliciously satisfying comfort meal and exquisite wine experience, you will know that you hit your jackpot during your visit to Vegas. Lotus of Siam is located at 953 East Sahara Avenue, A5, Las Vegas, NV 89104 (702) 735-3033, open Mon - Fri from 11:30 am to 2:30 pm, and 5:30 pm to 10:00 pm and Sat - Sun from 5:30 pm to 10:00 pm, www.saipinchutima.com.

For a confl uence of great music, dance and visuals, check out Michael Jackson ONE by Cirque de Soleil at Mandalay Bay. For more information, go to: www.

cirquedusoleil.com.

If you really want to experience Las Vegas in a more native form, take a taxi to Fremont Street. Fremont Street is the most famous street in Las Vegas, next to

the Las Vegas Strip. Once you’ve experienced this spectacle, walk around the neighborhood and discover all the cool speakeasy bars, restaurants and smaller scale entertainment venues that will make you feel like a local.

Culturally yours, Elliot M. Shirwo, Bolour Associates, The Entrepeneur’s Bridge Lender of Choice (www.bolourassociates.com). For more information on FOODWINEART, see www.elliotshirwofoodwineart.weebly.com.

Join Us In Las Vegas • October 23-24, 2014

Fall

Sem

inar

California Mortgage AssociationSecuring Loans with Multiple Parcels of Collateral

Commercial Underwriting (part 3 of 3)

BRE Investigations: Dealing with New Enforcement (Yes, even the BRE!)

The Basics of Disclosures (CMA Members Only)

Pool Manager’s Focus Group (CMA/Pool Manager’s Group Members Only)

Dodd Frank Focus Group (CMA Members Only)

Legal and Regulatory Review (part 1 of 2)

Legislative Update for the Private Money Industry

Thursday Networking / Cocktail Hour • Friday Wine & Cheese Hour

� � � � ��

��

��

��

��

��

�

�

��

�

�

��

��

��

��

��

�

��

� � � � California Mortgage Associationwww.californiamortgageassociation.com

CMA Las Vegas

General InformationLOCATION:

Join us in Las Vegas for the Fall CMA Seminar, October 23 and 24, at the Monte Carlo Resort and Casino, 3770 Las Vegas Boulevard, South Las Vegas, NV (www.montecarlo.com). For room reservations, register online at https://resweb.passkey.com/go/XCMA2014 or call the hotel at 800-311-8999 or 702-730-7777 and ask for the “CMA 2014 Conference” rate. Wednesday and Thursday nights are $80 per night plus $20 resort fee. Friday night is $140 per night plus $20 resort fee The Resort fee includes in-room internet access, fitness center and daily newspaper. Parking is complimentary. Cut-off for reservations is September 29, 2014, or when sold out.

SEMINAR FEES:

Full registration includes all seminar events, materials, Thursday Cocktail/Networking Reception, Friday Lunch, and Friday Wine and Cheese Networking Event, but does not include Pool Manager’s Focus Group and Luncheon, which require separate registration.

Registration received on or before

October 10, 2014

Registrationreceived from October 11, 2014 to date of seminar

CMA Regular Member $370 $420

Additional Attendee Same Company $320 $370

Educational Member $370 $420

Non-Member $570 $620

Pool Manager’s Focus Group + Lunch* $65 —*Must register by 9/30/14. Limited to regular CMA members who pre-register and who are Pool Manager’s Focus Group Members.

REFUND POLICY:

Cancellations received in writing on or before October 4, 2014 will receive a conditional credit toward a future seminar. No credit or refund for cancellations not received in writing by October 4, 2014.

CMA DISCLAIMER STATEMENT:

Views, statements, information, and materials provided at CMA seminars do not necessarily reflect the views of the California Mortgage Association, its Officers, Directors, or Members. When considering any document, opinion, publication, or other material obtained at or from CMA or from any CMA event, attendees and recipients of the information are advised to seek qualified counsel as to the suitability of that material or information for their own business operation or use.

MISCELLANEOUS:

Please wear name badges to all functions. Tickets are required for various events. Please be courteous of others and place mobile phones on silent mode. Program and speakers are subject to change without notice.

Private Money

is Moving to the

Next Level.

Are You?

Thursday, October 23, 2014 7:30 am - 8:00 am Continental Breakfast

7:30 am - 5:00 pm Seminar Registration

8:00 am - 10:00 am Exhibitor Set-Up

10:00 am - 6:00 pm Exhibitor Fair Open

Special Members-Only Focus Group Sessions:CMA Focus Group Sessions are open only to CMA members. After the 8:00 am - 9:50 am Consumer Lending Session, there are TWO programs to choose from. Please choose either the Pool Manager’s Focus Group or the Basics of Disclosures.

8:00 am Consumer Lending / Loan Servicing / Dodd Frank Focus Group9:50 am Michelle R. Rodriguez, CMA Dodd Frank Chair; and Julia Wei, Esq., The Brewer Law Firm Consumer lending / loan servicing AND Dodd Frank issues: Get practical concepts and strategies based

on hours of research. Consumer lending and the servicing of consumer loans also continue to change and challenge. Hear continuing and practical updates to your compliance road map.

9:50 am - 10:10 am 20 Minute Refreshment / Networking Break

10:10 am Basics of Lending Disclosures (NON-Consumer AND Consumer Lending)12:00 noon Lori Randich, Vice President, Redwood Mortgage; and Michelle R. Rodriquez, General Counsel and Chief Compliance Offi cer, Woodland Hills Mortgage Which specifi c Notices and Disclosures do you have to provide to Borrowers, and when do you have to

provide them? It’s easy to get these questions wrong, but it’s just as easy to get them right! It doesn’t matter if you broker your loans or fund them yourself, or which license you’re operating under, Michelle and Lori will help you make sense of it all. This topic will be relevant for both Consumer and Non-Consumer loans. Sample Forms will be provided.

10:30 am Pool Manager’s Focus Group12:45 pm Moderated by Glenn Goldan, ReProp Financial (Doors locked at 10:45 am) (Separate Registration Required) Lunch is included. NOTE: Meeting open only to qualifi ed Pool Manager’s Focus Group members who pre-register by 9/30/2014. • Update on the California Investment Advisor regulations relating to blind pools, K. Bradley Rogerson,

Hanson Bridgett; • Update on SB 978 relating to blind pools, Mark Lubin, Stein & Lubin; • Update to JOBS Act – Advertised Reg D blind pools; Bruce Methven, Methven & Associates; • CrowdFunding: A brief overview; Dennis Doss, Doss Law; • CMA’s position w/SEC – Accredited Investors, N. Mitchell Feinstein, Esq.; • Open discussion of topics of interest / future programs

12:00 noon - 1:00 pm Lunch on your own (unless attending Pool Manager’s Focus Group)

1:00 pm - New Enforcement Practices from the BRE!2:20 pm Frank Buda, Attorney, Law Offi ces of Frank Buda; Moderated by Joffrey Long, CMA Education Chair NEW trend: Some BRE broker audits / investigations where violations are found are being settled without

fi ling an Accusation against the broker’s license. Further, they’re being settled with dismissal of the BRE accusation and removal of any reference to the action. Mr. Buda will discuss the new cite and fi ne process, how it can benefi t real estate brokers. Costs of investigations and audits, which can run into tens of thousands, will also be discussed, along with potential fi nes. Find out what the BRE is focusing on and how the BRE operates when they perform an investigation or audit. Get a “short list” of what to look for to help avoid problems. Frank Buda is an attorney whose sole practice for the past 23 years has been helping real estate licensees in their dealings with the BRE. He’s a former Legal Counsel with the DRE and former Deputy Real Estate Commissioner I, II, and III. Who would even think of missing this?

2:20 pm - 2:50 pm 30 Minute Networking Break

2:50 pm Legal and Regulatory Review (part 1 of 2)5:00 pm Phil Adleson, CMA Corporate Counsel; and Patric Kelly, Senior Attorney and Shareholder, Adleson, Hess, and Kelly, a P.C. Does that law affect me? CMA’s extensive and carefully-prepared summary of legal and regulatory

changes that affect your business gives you solutions in a practical “take it back to the offi ce and use it Monday” format. Thoughtful analysis, the impact on your business, and methods to consider in modifying or improving your own business practices are all communicated clearly. This is part 1 of 2; part 2 will be presented in February in Orange County.

5:00 pm - 6:00 pm Cocktail and Networking Hour, Sponsored by SBS Trust Deed Network

7:30 am - 8:30 am Continental Breakfast / Networking in Exhibitor Area

7:30 am - 4:30 pm Registration

7:30 am - 5:00 pm Exhibitor Fair Open

8:30 am - Securing Loans with MULTIPLE PARCELS OF COLLATERAL – and Getting It Right!10:00 am Phil Adleson, CMA Corporate Counsel; Patric J. Kelly, Senior Attorney and Shareholder, Adleson Hess and

Kelly, a P.C.; Moderated by Lori Randich, Vice President, Redwood Mortgage Additional parcels of collateral are essential to making some loans. They may make loans more secure for

investors ... but only if done correctly. There are many areas to improve practices, and a surprising number of errors being made in:

• Documentation • Protecting cross-defaults in cross-collateralized loans • Disclosure • Title insurance issues • Loan servicing concerns • Partial release/reconveyance issues • Foreclosures and foreclosure sales

General counsel for both CMA and the United Trustees Association, Phil Adleson is in a unique position to lead this panel and provide us with current information and practices in this critical area.

10:00 am - 10:30 am 30 Minute Networking Break

10:30 am - Commercial: Forensic Underwriting (part 3 of 3)12:00 noon Glenn Goldan, President, ReProp Financial; and Selected Panelists Get answers from closed deals and mistakes that others paid for! This will walk you through specifi cs of

commercial underwriting and will address numerous loan types and challenges with properties, borrowers, tenants and users. This is the third session in CMA’s 3-part series on commercial underwrting. You’ll get specifi c tools based on hundreds of deals and years of experience. Attend this and take your knowledge to yet another level.

12:00 noon - 1:30 pm Luncheon and PAC Drawing

1:30 pm - Legislative Update2:30 pm Mike Belote and Mike Arnold, CMA Legislative Advocates; Moderated by George Eckert, CMA Legislative Chair New laws affecting your business? Find out what’s been passed, being considered and what CMA is doing

about it. Your legislative advocates and legislative chair will update you on legislative changes, what can be done, what CMA is doing, and what you’ll need to consider. Benefi t from being aware of what’s happening, but often more importantly, knowing which direction the changes will take us.

2:30 pm - 3:00 pm 30 Minute Networking Break

3:00 pm - Lawsuit Prevention: The Latest in Problems and Prevention4:00 pm Richard Temme, President, Woodland Hills Mortgage; and Selected Panelists Stay on top of current dangers leading to lawsuits. For both Non-consumer and Consumer loans, new

avenues of potential litigation exist. In what new areas can we be sued? What are the best things we can avoid to reduce risk? What has changed in the areas of business purpose loans, as well as other areas?

4:00 pm - 5:00 pm Wine and Cheese Networking Hour

5:00 pm Seminar Concludes

Friday, October 24, 2014— Open to All Attendees —

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


Pictures From the Summer Seminar – July 18-19 in San Diego, CA


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 19

CMA’s positive infl uence is crucial for our survival. Send your contribution today!

It’s easy to donate:Online at www.californiamortgageassociation.com

— or —Send the additional amount with your monthly CMA dues

— or —Write a check to “CMA PAC” and send it today to:

2520 Venture Oaks Way, Suite 150 • Sacramento, CA 95833

PROTECT YOUR INDUSTRY – CONTRIBUTE TODAY!For more information contact:

Richard Wachter, Chairperson, CMA PAC Fundraising Committee 1-800-308-4961

$ 1 0 0,0 0 0Goal

$15,450raised so far

(fi scal year 2014-2015)

DON ATE TO THE CM A PAC TODAY !

Our PAC and our advocates in Sacramento always operate in full compliance with all laws and regulations relating to eff orts to infl uence the public policy process. We would never engage in any type of quid-pro-quo on public policy issues or entertain contributions in return for access. We support legislators who are philosophically aligned with the interests of our membership and who work to ensure a business environment which allows our members to fl ourish.

Pictures From the Summer Seminar – July 18-19 in San Diego, CA

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


Thank You to Our Summer Seminar Sponsors

— Thursday Morning Hot Breakfast —

— Thursday Snack —

— Thursday Cocktail Networking Hour —

— Thursday Meeting Room Wi-Fi —

— Binders —

— Friday Morning Hot Breakfast —

— Friday Snack —

— Friday Wine & Cheese Networking —

— Friday Meeting Room Wi-Fi —

— Padfolios —

Del Toro Loan Servicing


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 21

Applied Business Software, Inc.2847 Gundry AvenueLong Beach, CA 90755

800.833.3343 – p / 562.426.5535 – fContact: AJ Poulin

E-mail: [email protected]: www.themortgageoffi ce.com

Product/Service: Loan Servicing Software

Armanino LLP12657 Alcosta Boulevard, Suite 500

San Ramon, CA 94583925.790.2721 – p / 925.790.2601 – f

Contact: Josh NevarezE-mail: [email protected]

Website: www.amllp.comProduct/Service: Audit / Accounting

BuildZig1211 Embarcadero Way, Suite D

Oakland, CA 94606800.380.0180 – p / 866.703.5150 – f

Contact: John BohannonE-mail: [email protected]

Website: www.buildzig.comProduct/Service: Project Management, Funds & Risk Control

Del Toro Loan Servicing2434 Southport Way, Suite F

National City, CA 91950619.474.5400 – p / 877.826.7834 – f

Contact: Drew LouisE-mail: [email protected]

Website: www.deltoroloanservicing.comProduct/Service: Loan Servicing

FCI Lender Services8180 East Kaiser Boulevard

Anaheim Hills, CA 92808800.931.2424 – p / 714.282.2425 – f

Contact: Gordon AlbrechtE-mail: [email protected]

Website: www.trustfci.comProduct/Service: Loan Servicing Note

HPP Cares3939 Long Beach Boulevard

Long Beach, CA 90807562.424.4477 – p / 562-424.4471 – f

Contact: Katherine PeoplesE-mail: [email protected]

Website: www.hppcares.orgProduct/Service: House Counseling / Online Workshops

IRA Services Trust Company 1160 Industrial Road, Suite 1

San Carlos, CA 94070800.248.8447 – p / 650.591.2168 – f

Contact: Michael McNairE-mail: [email protected]

Website: www.iraservices.comProduct/Service: IRA Custodial Services

Liberty SBF23 Corporate Plaza Drive, Suite 150

Newpoert Beach, CA 92660Contact: Zach Murphy

E-mail: [email protected]: www.libertysbf.com

Product/Service: Commercial Real Estate Financing

Loan Oak Fund LLC11611 San Vicente Boulevard, Suite 640

Los Angeles, CA 90049310.826.2888 – p

Contact: Alexa MizrahiE-mail: [email protected]: www.loneoakfund.com

Product/Service: Direct Portfolio Lender / Bridge Lonas

Thank You to Our Summer Seminar Exhibitors

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


Mortgage Care29222 Rancho Viejo Road, Suite 209

San Juan Capistrano, CA 92675800.481.2708 – p / 650.745.7088 – f

Contact: Bob SpierE-mail: [email protected]

Website: www.mortcare.comProduct/Service: Loan Software

PLM Lender Services, Inc.46 North Second Street

Campbell, CA 95008408.370.4030 – p / 408.370.5484 – f

Contact: Elizabeth KnightE-mail: [email protected]

Website: www.plmweb.comProduct/Service: Loan Servicing/Foreclosure Doc/Drawing

Ross Diversifi ed Insurance Services2922 East Chapman Avenue, Suite 203

Orange, CA 92689714.633.7677 – p / 714.633.7788 – f

Contact: Mel BabtkisE-mail: [email protected]: www.rossdiv.com

Product/Service: Insurance Products

SBS Trust Deed Network31194 La Baya Drive, Suite 106

Westlake Village, CA 91362818.991.4600 – p / 818.874.9500 – f

Contact: Mitch WilletE-mail: [email protected]: www.sbstrustdeed.com

Product/Service: Foreclosure Services / REO

Seattle Funding Group4711 Viewridge Avenue, Suite 270

San Diego, CA 92123858.751.0556 – p / 858.560.0529 – f

Contact: Chuck SalasE-mail: [email protected]

Website: www.seattlefundinggroup.comProduct/Service: Direct Lender

Total Lender Solutions, Inc.6540 Lusk Boulevard, Suite C238

San Diego, CA 92191866.535.3736 – p / 858.630.5570 – f

Contact: Randy NewmanE-mail: [email protected]: www.totallendersolutions.com

Product/Service: Foreclosure / Default Services

Thank You to Our Summer Seminar Exhibitors

Did You Know ...?

You can locate exhibitors and vendors who supply

services to CMA Members.

Visit the CMA website at www.californiamortgageassociation.com

and click on the Vendor Directory. You can search

by city and type of service.


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 23

Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!$3,000 – $6,500

Anchor Loans, Inc.Calabasas

Equity Funding Resource, Inc.Sherman Oaks

$1,000 – $1,999

Budget Mortgage Corp.Los Angeles

FCI Lender Services, Inc.Anaheim Hills

PLM Lender Services, Inc.Campbell

Roza Real Estate Loans Inc.San Francisco

Standard Mortgage Financial Services Inc.

Riverside

$2,000 – $2,999

Fidelity Mortgage Lenders, Inc.

Los Angeles

$500 – $999

Adleson, Hess & Kelly, a P.C.Campbell

BaySierra Financial, Inc.Santa Rosa

California Western Financial Investments, Inc.

Los Alamitos

Cirius CapitalSan Jose

Creative Realty Marketing & MortgageBakersfi eld

Geraci Law FirmIrvine

Herzer Financial Services, Inc.Redwood City

Lantern Financial Corp.Sherman Oaks

Law Offi ce of Peter N. BrewerPalo Alto

MAI Financial Services, Inc.Toluca Lake

Mortgage Securities Inc.Encinitas

Selzer Home LoansUkiah

Stonecrest FinancialSan Jose

Val-Chris Investments, Inc.Irvine

Wachter Investments, Inc.Burlingame

Woody Financial Realty Corp.Long Beach

$200 – $499

A-1 Loans & InvestmentsSanta Rosa

Allstar Financial Services, Inc.Woodland Hills

BayMark Financial Inc.San Mateo

Bolour AssociatesBeverly Hills

California Private Investors, Inc.Claremont

Del Toro Loan Servicing, Inc.National City

E.F. Foley & Co., Inc.San Jose

F.E. Forbes Company Inc.Berkeley

FJM Capital, Inc.San Rafael

Hanson Bridgett LLPSan Francisco

Hensel Financial, Inc.Carlsbad

Kirby & McGuinn, A P.C.San Diego

Law Offi ce of Benjamin R. LevinsonCampbell

Mid Valley Services, Inc.Fresno

Mortgage Vintage, Inc.Newport Beach

National Equity Funding, Inc.Irvine

Olympia Mortgage & Investment Co., Inc.

Grass Valley

Pacifi c Capital Loans, LLCCalabasas

Pacifi c Private MoneyNovato


� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!

Private Financial, Inc.Sherman Oaks

Red Tower Capital, Inc.San Francisco

Redwood Mortgage Corp.San Mateo

Redwood Trust Deed Services, Inc.Santa Rosa

Residential First MortgageIrvine

S.B.S. Trust Deed NetworkWestlake Village

Socotra CapitalSacramento

Sonoma Equity Lending, Inc.Petaluma

Spiegel Accountancy Corp.Walnut Creek

Sunset MortgageMission Viejo

The Helvetica GroupCarlsbad

The Norris GroupRiverside

Total Lender Solutions, Inc.San Diego

Trilion CapitalSan Diego

Unitrust Mortgage, Inc.San Diego

Windvest CorporationSan Diego

Woodland Hills Mortgage CorpWoodland Hills

$200 – $499 continued $20 – $199

A.C.M. Investor Services, Inc.Larkspur

A.S.K. Investments, Inc.Stanton

Agricultural FinanceHayward

All California FundingStudio City

Applied Business SoftwareLong Beach

Athas Capital GroupCalabasas Hills

Available Home Loans, Inc.San Bernardino

Blackburne & BrownSacramento

California Home LoansSan Jose

California Private LendersAgoura Hills

Cal-Pac Capital AdvisorsNewport Beach

Capital Benefi t, Inc.Newport Beach

Capital Direct Funding, Inc.Pasadena

Cournale & Co.San Francisco

Cushman Rexrode Capital CorporationOakland

Custom Financial Services Inc.Torrance

Dark Horse DevelopmentOakland

Datacom Investment Co.Trabuco Canyon

David A. Duner, CPAIrvine

DFI Funding, Inc.Emeryville

Diamond PotransDiamond Bar

DMA Corp.Cathedral City

Doss LawLaguna Beach

Elmer F. Karpe, Inc.Bakersfi eld

Equity Bridge CapitalSan Francisco

Equity Wave LendingIrvine

Gasbarro Investments, Inc.Calabasas

Hamilton Ridge Asset ManagementSan Jose

Hanover Mortgage CompanyTustin

Helvetica GroupCarlsbad

Investors Capital CorporationVan Nuys

IRA Services Trust CompanySan Carlos

JMJ Financial GroupGarden Grove

Lone Oak Fund, LLCLos Angeles

MCapital Funding, LLCNovato

McCormick & CoSanta Rosa

MHL Financial, Inc.Pasadena

Mortgage Lender Services, Inc.Folsom

Mortgage+CareSan Juan Capistrano

Nationwide Realty Capital, Inc.Mission Viejo

Note Servicing CenterChowchilla

OnPoint Services, Inc.San Diego

Pacifi c Horizon Financial, Inc.San Diego

Pfeifer & De La Mora, LLPOrange

$20 – $199 continued


Continued from page 23


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 25

PMB Capital, Inc.Calabasas

Post Investment GroupLos Angeles

Private Capital GroupAptos

Private Capital InvestmentsAlamo

Private Lending and Investing ServicesDiscovery Bay

R.C. Temme CorpWoodland Hills

Real Estate Lending Group, Inc.San Jose

Realty Capital Lending GroupDowney

ReProp FinancialEureka

Ross Diversifi ed Insurance Services, Inc.Orange

Salas FinancialSan Diego

San Luis FinancialSan Luis Obispo

Savvy Real Estate CapitalWalnut Creek

SDC Capital FundingTarzana

Security Financial ServicesSan Francisco

Sequoian Investments, IncSan Diego

Showcase Investments, Inc.Glendale

Sterling Pacifi c Lending, Inc.Watsonville

Streit LendingVan Nuys

Superior Loan ServicingCalabasas

Tahoe Lending GroupIncline Village

Technology Credit UnionSan Jose

$20 – $199 continued

The Argus GroupWoodland Hills

The Bowers GroupAlamo

The Three WisemenEl Segundo

Twin Pier CapitolSanta Monica

United Security InvestorsBeverly Hills

Watsonville MortgageWatsonville

Wright, Finlay & Zak, LLPNewport Beach

Yale Street MortgagePasadena

$20 – $199 continuedPAC PAC PAC PAC PAC PAC PAC PAC PAC PAC PAC PAC PAC PAC PAC PAC PAC PAC

Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:Announcements:• CMA PAC Monthly Contributor

Drawing: Richard Selzer

• Winner of the iPad Mini with mobile service: Robert Box

• Winner of the iPad Air: Lori Randich was the lucky winner and generously re-donated it; Pam Sosa was the successful bidder.

• Winner $200 Apple Gift Card:

Tracy Hatfi eld

Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!Thank You 2014 PAC Contributors!

CMA would like to thank Steve Leidner for his generous PAC contribution and continued support!

Gordon Getz, Past PAC Chair, with wife Caroline Getz, recently attended a backyard fund raiser for Young Kim, a candidate for State Assembly (AD 65). On behalf of CMA and the PAC, they presented her with a check for $1,000.

Steve Leidner awarded CMA Director Emeritus

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �



�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 27


The enactment of the Homeowner Bill of Rights, Dodd-Frank and the implementation of the new

CFPB rules have required lenders to educate themselves concerning the legal ramifications of electing a foreclosure prevention alternative when a borrower defaults on a consumer, owner-occupied loan. The decision to agree to a forbearance agreement, loan modification, or a deed-in-lieu of foreclosure will depend on the lender’s assessment of the ultimate collectability of the loan and the risks associated therewith. The legal choices made carry with them tax reporting implications, as well as accounting implications, when reporting in accordance with generally accepted accounting principles (“GAAP”), which should be considered.

Foreclosure Prevention AlternativesWhen a loan becomes delinquent, the lender has several alternatives to collect payment:

Delinquent Loans – What are the Tax

and Accounting Implications of the Collection Choices Made by Lenders?

ForbearanceA forbearance agreement is a short-term agreement between the borrower and lender whereby the lender agrees to delay the enforcement of its rights under the terms of the loan in exchange for the borrower agreeing to cure the default within a specified period of time. Other than the temporary delay in proceeding with collection, the forbearance will not modify the terms of the loan. Generally, a forbearance agreement lasts up to six months. There are no tax reporting or GAAP accounting implications to a loan that is in forbearance when there is no impact to the ultimate collectability of the loan and the delays are temporary.

Loan ModificationA loan modif ication is similar to a forbearance agreement; however, there are a few crucial differences: first, a modification changes the terms of the loan rather than temporarily delaying enforcement by the lender; second, a modification will result in the cure of the

default, requiring the lender to initiate a new foreclosure action in the event of the borrower’s default after modification.

There are tax reporting and GAAP accounting implications to a loan modification which can be significantly different from one another. For tax reporting purposes, if a loan modification is determined to be “significant” the lender must exchange the original loan for the modified loan (deemed a “new” loan for tax purposes) and a taxable gain or loss is determined based on the difference between the two loans. For tax purposes, the term significant applies if any of the following criteria are met:

• Change in the annual yield that is more than the greater of 25 basis points or 5% of the original yield

• Change in the timing of payments that results in a deferral period of more than the greater of 5 years or 50% of the original note term

Dennis BaranowskiGeraci Law Firm

Henry ChavezSpiegel Accountancy Corp.

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


• Change in the obligor or a recourse obligation

• Change in security and payment expectations

• Change in the nature of a debt instrument from nonrecourse to recourse

If none of these criteria are met, no action is taken for tax purposes.

For GAAP accounting purposes, the modifi ed loan will never be considered a new loan irrespective of the change in note terms because the change is considered part of the ongoing eff orts of the lender to collect payment. However, the lender must calculate the diff erence between the original and modifi ed loans to determine whether impairment exists and a valuation allowance should be recorded. The lender has the option to calculate the potential impairment either based on the loan’s discounted cash fl ows using the original interest rate, or the fair market value (“FMV”) of the underlying collateral less the

costs to sell it. Any calculated impairment shall be recorded as a valuation allowance.

Deed in Lieu of ForeclosureA deed in lieu of foreclosure allows the lender to take title to the property securing the defaulted loan without the need to foreclose. As a result of the deed in lieu of foreclosure, the borrower will be released from any further liability under the loan. As with the loan modifi cation, there are tax reporting and GAAP accounting implications to a deed in lieu of foreclosure.

For tax reporting purposes, assumption of the property is a reportable event, and a gain or loss will be recorded based on the diff erence between the FMV of the property less the related selling costs compared to the book value of the original loan. To the extent the property is held across multiple fi scal years, no additional gain or loss will be recorded until the property is sold.

For GAAP accounting purposes, the property will initially be valued at FMV

using the same methodology applied for tax reporting purposes. However, to the extent the property is held for multiple fi scal years, the property will have to be revalued every year. To the extent the property decreases in value, a valuation allowance is applied to the property with the resulting loss recorded in the profi t and loss statement. In future years, if the property increases in FMV, the property can be written up to its original FMV on the lender’s books and records, with any excess in FMV taken at the time of sale.

Determining the best course of action to take with delinquent loans can be challenging from legal, tax reporting and GAAP accounting perspectives and consultation with legal and accounting professionals should be considered before fi nalizing the choices made on delinquent loans.

If you have any questions, please contact Dennis Baranowski, Geraci Law Firm, or Henry Chavez, Spiegel Accountancy Corp.

Delinquent Loans – continued from page 27


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 29

Two recent cases reinforce the legal priority of bonded stop notice claimants to construction loan

proceeds, including already disbursed interest, points and fees, as well as to undispursed interest reserve and other similar set-aside devices. In Brewer Corporation v. Point Center Financial, Inc. (2014) 223 Cal.App.4th 831 (“Brewer”) and in an unpublished decision, Paveco Construction, Inc. v. East-West Bank (May 5, 2011) [Cal.Ct. App., Second App.Dist. Case No. B223912] (“Paveco”), two different California Appellate Courts reaffirmed the holding in Familian Corp. v. Imperial Bank (1989) 213 Cal.App.3d 681 (“Familian”) that stop notice claimants have priority over disbursements already paid out to the lender for interest and fees earned before service of the bonded stop notice. In these cases, the courts have once again affirmed the ability of bonded stop notice claimants to reach and claw-back any sums paid out by construction lenders at any point during the administration of the loan in order to pay duly perfected bonded stop notice claimants.

In Brewer, three bonded stop notice claimants on the construction project were consolidated in an action where the construction lender had paid itself and other investors more than $1.5 million in interest, loan fees/points, loan underwriting and other fees. At trial, the court ruled that the stop notice claims took precedence over the lender’s alleged contractual right to pay itself interest, loan fees and other expenses from the loan proceeds. The trial court awarded the stop notice claimants more than $1.5 million,

Construction Lenders Go Down in Flames ... Again

together with interest and attorneys’ fees. In the appellate court, the lender attacked the Familian case, contending that it was both factually distinguishable and wrongly decided. The appellate court brushed aside the lender’s arguments and reiterated that the Familian decision was correctly decided. The basic rationale for Familian comes from a California Supreme Court case decided in 1976. In that case, Connolly Development, Inc. v. Superior Court (1976) 17 Cal.3d 803, the California Supreme Court reasoned that mechanics lien and stop notices are remedial legislation which must be liberally construed to protect claimants. And since most construction lenders are able to achieve recording priority for their loan trust deeds before commencement of construction, the stop notice remedy was developed by the legislature to protect contractors since they accept significant credit risk in proceeding with the construction that improves the collateral of the lender. In other words, while the lender may have priority to the property through a prior recorded deed of trust, the bonded stop notice claimant has priority to the construction loan proceeds in order to balance the equities and protect the people who supplied work, labor and materials to improve the property.

The Brewer court reiterated that the statutory prohibition against assignment of construction loan proceeds for purposes of defeating a bonded stop notice claimant was valid and enforceable. The court also strongly endorsed the Familian ruling which allowed the bonded stop notice claimants to force the lender to return any money it received from the construction

loan proceeds. The court also affirmed prior case law that a mere private contract between a borrower and a lender that preallocates construction loan funds to pay for disbursements to the lender cannot supersede the law that prohibits such assignments to defeat bonded stop notice claims.

T h e B rewer c as e a ls o a d dress e d other significant issues related to the administration of construction loan proceeds. The court ruled that, except in very unusual circumstances, a bonded stop notice claimant must timely and properly serve a preliminary notice on the construction lender, owner and general contractor as a prerequisite to the enforcement of a bonded stop notice.

Additionally, the Brewer court reiterated longstanding jurisprudence that in the absence of some prejudice to the lender (like the disbursement of funds before receipt of the notice), a claimant who fails to serve a notice of commencement of action required by former Civil Code §3172 is not barred from recovery on the bonded stop notice.

In Paveco, the contractor prevailed in clawing-back into the stop notice fund money paid out to the lender from an interest reserve fund. The contractor properly served its 20-day notice on the bank, informing it that it intended to perform approximately $250,000 of work at the project. At the time it received the contractor’s preliminary notice, the lender

By Glenn E. Turner III

Gibbs Giden Locher Turner Senet Wittbrodt LLP


� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


had only $39,000 left in its loan funds after paying itself over $2.4 million from the loan proceeds. The bank did not respond to the contractor’s preliminary notice.

Once again, the appellate court clearly reaffirmed Familian and the statute prohibiting the prior assignment of construction loan proceeds to defeat bonded stop notice claimants. The court ruled that the contractor was the intended recipient of the construction loan funds the bank had preallocated and then disbursed to itself. When it received Paveco’s preliminary notice, the bank already knew that the owner was in default and that there was only $39,000 left in the loan proceeds. But it failed to act or respond to Paveco at all. Under these facts, the contractor’s statutory priority over the disbursements the bank made to itself was found to be consistent with the remedial purposes of the statute and the public policies underlying these statutes.

Analysis

For decades, the construction lending industry has fought Familian tooth and nail without success. It is time for the construction lending industry to move on. The fi ght is over. If lenders intend to secure the payment of their fees, interests and costs with the construction loan proceeds, they will always be at risk of recapture given the now settled state of California law in this area. As always, there is no substitute for vigilance and proper construction fund disbursement aligned with actual construction progress on the property. Such tried and true claims avoidance techniques minimize the exposure of the lender to bonded stop notice claims at the end of a project. As alternatives to contractual set-aside reserves, lenders might consider utilizing means other than construction loan proceeds to secure the payment of interest, points and fees to avoid the Familian claw-back exposure.

Construction Lenders – continued from page 29

Such devices could include a separately secured loan, a preconstruction interest reserve account utilizing funds not derived from the construction loan, bonds or undertakings, personal guaranties and other similar devices.

The consequences of involvement with bonded stop notice claimants does not end just with the lender disgorging already earned and paid interest, fees and costs. To add insult to injury, the lender may end up paying the attorneys’ fees of the bonded stop notice claimant.

It is important for California construction lenders to understand the risks and consequences associated with bonded stop notices whenever embarking on a construction loan transaction. Vigilance, preplanning and good construction disbursement oversight can mitigate but never eliminate the risks of a properly perfected bonded stop notice.

Bob Spier – President of Consulting Plus, Inc. and chief architect of

Mortgage+Care Loan Servicing Software has volunteered to submit a regular

column discussing technology issues facing mortgage brokers. These articles target

offi ces with part-time IT staff or “do-it-yourselfers.” Larger offi ces should consult

their IT staff before making any changes. You may reach Mr. Spier at bob@mortcare.

com or (530) 432-3741.

Technology Q & A

By Bob Spier


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 31

t’s fall and almost time for Halloween. This means ghosts, goblins, and other scary things ... including Ransomware –

the latest and greatest breed of software viruses.

Ransomware is a type of malware often released by professional criminals. The infected computer locks up and demands a ransom to remove itself. These viruses sometimes encrypt all of your fi les (and fi les on connected drives) and render them unusable. Sometimes even if you pay the ransom, your fi les may not be usable.

CryptoLocker was an extremely bad ransomware example. A computer user receives an e-mail from what looks like a legitimate e-mail companion. The user is encouraged to click on an attachment. Once this is done, a zip fi le unloads its tricks and treats and attacks your computer and all mapped network drives. You then get a message to pay around $400 ransom through a hard-to-trace, pre-paid voucher or Bitcoin within 72-100 hours. The FBI estimates that up to 400,000 computers have been hit by this variant. Crooks are making real money off of this.

And you thought the BRE and CFPB was scary enough!

“So what steps should I take to prevent an attack” you say? Here are some basics:

BACKUPS – This is your best defense for all sorts of disasters. Often we have customers take their computers into the shop after a virus attack and the tech is only partially able to remove the damage. I’d

What is Ransomware and Should I Care?say in 1 out of 2 cases, the technician ends up formatting the hard drive and starting over. Think about where you would be right now if that happened to you!

A mirrored drive or a continuous syncing cloud backup may get corrupted before you realize you have a problem. That’s why we recommend a periodic backup of your critical data to a cloud server or a removable hard drive. We also recommend keeping multiple backup hard drives on and off site in case of fi re, theft, or other disasters.

Full image backups are the best if you ever need to restore your computer. With a full image, you can pop a new hard drive in to your computer and restore everything up to the last backup point. This saves days on confi guration per machine. Windows 8.1 now has a feature to do this in a utility called File History. Storagecraft also makes an excellent product to backup hard drive images with more options.

Backups are worthless if they don’t work when you need them. No matter what method you use, occasionally try restoring a fi le to your current computer to make sure everything is still compatible.

SHOW FILE EXTENSIONS – Many viruses take advantage of the fact that Windows hides the extensions of some fi les. Baby_pictures.jpg is a lot diff erent from Baby_pictures.jpg.exe. To change this setting, simply type ‘show fi le extensions’ in the Windows search bar. You’ll be taken to a Folder Options utility where you uncheck

“Hide extensions for known fi le types.”

PROTEC TIO N SO FT WAR E – At a very basic level, you should be running Windows Firewall and Windows Defender. These are free programs provided by Microsoft. Avast, Symantec, and McAfee are good substitutes. But using nothing is a really bad idea.

EDUCATION – Knowledge is power and is your best defense besides backups.

• Always hover over a link in an e-mail and see if the source looks legitimate.

• Notify your friends if they are sending out suspicious e-mails. Remove the link or attachment in the reply. And for heaven’s sake, don’t click on the link! Ask your friends to change their passwords. Ideally from a non-infected device.

• Use multiple passwords. If keystroke logging virus gets your Twitter password, then you don’t want that compromised password to open your bank accounts too.

• Be extra careful clicking on zip fi le attachments.

• Keep Windows, Java, and Adobe products up to date.

• Use common sense when browsing the Internet.

Keep in mind these practices are not just for Windows users. Mac and smart phone attacks are becoming more common. Taking these few steps now could save you hundreds of dollars and hours of frustration down the line.

Happy Halloween!

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


Mortgage Industry Information, Opinions & Tips

Are YOU a Responsible Broker?very day I meet with brokers who want to do things right, who want to come through a CalBRE audit without any fine

or penalty. Unfortunately, there is hardly a day in which I meet with a broker who would pass an audit without facing either a fine or an accusation. These are some of the problems I frequently find. How would your company measure up? Would these same problems be uncovered?

Lack of supervision. It is the responsibility of the broker of record (whether a sole proprietor or the Designated Officer of a corporation) to supervise the licensed activities of the agents under his/her license. This includes reviewing the files (or delegating day-to-day reviews to another licensee with at least two years’ licensed experience) for completeness and accuracy. This lack of supervision happens many times when there are branch offices or agents working from their homes. The broker must establish policies and procedures that insure that the activities of the agents are meeting the rules and regulations of the CalBRE and any federal rules and regulations that apply to the transactions.

Trust account problems. If you have read my articles over the last couple of years you know that the CalBRE generally finds trust account violations in the majority of audits. Do you sign on the trust account(s) as “Broker, As Trustee”? Is your trust account in a California bank? Is your account designated as a trust account? Does your trust account reconcile in a true, 3-way reconciliation every single month? Are

you receiving benefits (interest or credits or even mileage) from the trust account balances? Do only the proper signers sign on your trust account(s)?

Licensing issues. Are you only paying commissions to or allowing solicitation or negotiation by salespersons or broker-associates under your own license? Are you, by chance, paying commissions to salespersons who work for other brokers? Beware of this. The law is clear that you can only pay commissions to those agents who are under contract to your company/license. You cannot pay commissions to those salespersons licensed to other brokers.

NMLS concerns. If you are negotiating or soliciting or funding or brokering loans on 1-4 residential property for personal, family or household use, do you have the NMLS endorsement for yourself, your company and your sales agents? If you are accepting such loans from a co-broker, are you making sure that they, too, have the NMLS endorsement?

Threshold and Multi-Lender reporting. If you meet the threshold requirements, have you notified the CalBRE? Have you originated a multi-lender/fractionalized loan? Did you notify the CalBRE within 30 days of that first origination? Are you filing your quarterly and annual reports on time? If you meet the requirements and haven’t filed the proper notifications, do it now. Not tomorrow. Today. And, once you have filed the notification, make sure you file all of the quarterly and annual reports on time and accurately.

Licensed business name. Are you using only the name(s) under which you are licensed? Have you checked with your county to see if your fictitious business name is still active? Fictitious business names (also known as “dba”) expire every five (5) years. Most, if not all, of the counties in CA do not contact you when your name expires. It is up to you to make sure that the name is still active and renewed on time.

Secretary of State filings. If you have a corporation, are you filing the Statement of Information every year? Are you paying your corporate taxes to the Franchise Tax Board? Go to www.sos.ca.gov and check out your corporation to make sure it is active and not suspended due to lack of filings. Not only would this be a serious violation in the case of a CalBRE audit, but any contracts entered into while a corporation is suspended would not be valid. Definitely not a good thing.

Disclosures. Are you providing the MLDS to the borrower(s) within three (3) days of the application and the LPDS to the investor(s) as soon as possible prior to the funding of the transaction? Is a licensed agent signing the MLDS or the LPDS prior to presenting them to the borrower or investor for their signature? Are you making sure that these are personally (not digitally) signed?

There are so many more areas to watch, but these are the most common problem areas that I’ve seen in just the last few weeks. So, how did YOU do? Responsible broker, or not?


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 33

Get to Know Your CMA Board Members

As part of our eff ort to better connect the CMA membership with the Board of Directors, Points of Interest is continuing our series entitled “Get to Know Your CMA Board Members.” The series profi les three randomly-selected Board members per issue. The profi les will be fairly uniform and focus on the Board Member’s

history and current responsibilities within CMA, how the organization has benefi ted the Board Member’s business and a little bit about the Board Member’s professional and personal life. We are also including contact information for each Board Member should CMA members want to reach out, which is encouraged!

We hope that this series will foster an increased understanding of the Board members’ various roles within the organization as well as increased dialogue between the membership and the Board. As always, please do not hesitate to reach out to us with feedback on this series or ideas for other series that you would like to see in Points of Interest.

— The Editors

continued on page 34 continued on page 34 continued on page 34

— Noah Furie —

How long have you been on the CMA Board of Directors?

I was first elected to the board in 1984 (Mortgage Institute, Mortgage Association of California and California Mortgage Association).

Are you currently, or have you previously been, a member of any Board subcommittees?

I currently Chair the Amicus Sub-committee, but served on the Legislative Subcommittee for many years.

How long have you been a CMA Member, and what convinced you to join the organization?

I have been a member of our trade association since 1982. I joined because the company I worked for at the time,

— Glenn Goldan —


Since its inception. I was part of the team that helped merge CTDBA & MAC to form CMA (lots of acronyms!) I was honored to become the association’s fi rst elected president.


Yes, I currently serve on the Education and Legislative committees. I also chair the Securities and Pool Manager’s Focus Groups as well as the Construction and Commercial Focus Groups.


— John Graziano —


I have been on the CMA Board 12 +/- years and have served as an offi ce for 2 years in each position, Secretary, Treasurer, V. P. and President.


I have ser ved on the Education Committee and Membership Committee;


I have been a member of CMA and its predecessor organization since about 1989.

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


Budget Home Loans was a member and its owner, Stanley Zimmerman was very involved.

How has CMA changed since you joined?

Technology has been the biggest change over the years and being able to connect with our members.

What would you like to see change about CMA going forward?

I hope to see more of our members be willing to serve the organization on committees and board service.

Tell us about your business. Is it set up as a broker or a lender? How long has it been around? How can our members learn more?

Budget Mor tgage Corp and its predecessor companies have been direct lenders in the private money space for more than 30 years.

Please provide a brief bio on yourself.

Noah is the Co-Founder of Budget Mortgage Corp and is its chief operating offi cer. Noah has been in the lending and real estate business 35 years. Noah has experience in all areas of private money operations and compliance.

How has CMA benefi tted your business?

Education, advocacy, and networking.

How can CMA members contact you if they want to reach out?

[email protected] or 310) 954-1602

What is one fun fact the membership might like to know about you?

I love to build stuff and my idea of fun is buying a new power tool.

Noah Furie

Since its inception. I along with others, were committed to merging two competing trade associations into one eff ective unit. I thank all of those who worked to make CMA what it has now become – the most effective trade association serving private money brokers, bankers an all related services in the country ... by far!


Each year it sees new blood and ideas and CMA now going through a technology transformation led by Board Member David Herzer where you will see a better web interface and outreach to referral sources. I hope you will also start seeing an online library of archived Webinars. We need to explore social media opportunities as well.


The technology. For example, I want members and their staff to be able to go online and see a vast library of Webinars that they can view from their offi ce for a nominal fee. I want members of the public and their brokers to be able to search the CMA database for members who truly make “X” loan in “Y” location. That will require some vetting to make sure members don’t shotgun every loan possibility in every location regardless of whether they truly could make that loan.


ReProp Financial has been in business since 1986. We make business purpose loans using our money, long time investor money and eight fi gure bank credit lines in CA, WA, OR and our recently opened offi ce in AZ. Our mantra has always been we do what we say we are going to do when we say we will do it. We do tend to make the more conservative loans but in exchange we

Glenn Goldan


CMA has always had education of its membership as one of its core purposes.But in the last decade CMA has become more active in legislative and PAC activities. Members are more aware of the issues and are willing to open their wallets to support CMA legislative and political activities. As our legislative advocates have stated; CMA is still a relatively small organization but we have a seat at the table and people do listen.


(a.) Continuance of the educational programs with more programs on marketing and exploring how the internet can used by our members.

(b.) Continue to develop CMA’s legislative and political activities; coordinate political action with member letter writing, member personal contact with legislators and co-opting bills with similar-minded trade associations.

(c.) Have a program to develop new board members.


My wife and I, after each of our individual 20 year careers in commercial banking, decided in 1987 to obtain our real estate licenses and become mortgage brokers. In 1988 a client requested a private loan. We thought we knew what was required to document the loan and began dialing for dollars to fund the request.

We joined the Mortgage Institute in 1989/90 because we wanted to learn more about private lending and servicing. Within a few short years thereafter we started our own full service mortgage brokerage operation. In 2000 we sold

John Graziano

continued on page 35 continued on page 35


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 35

tend to price lower than most of our colleagues. To see examples of our loans go to repropfi onancial.com and click on Recent Success Stories.


I began my real estate career in 1976 and successfully owned and operated fi ve real estate brokerages and two property management companies in California. In 1986, I launched ReProp Financial, a private small balance commercial mortgage banking company. Its niche is blending collateral and credit analysis to fund loans which are just beyond the reach of traditional institutional lenders. Today with ReProp Financial as my sole business venture, the company has transitioned to a structured fi nancing model for its portfolio growth and has developed funding capacity in western states. I also maintain a consulting practice focused on real estate development, project workouts and commercial real estate lending and professional standards.

I along with my wife Shelle and daughter Hannah have been very active members of our community and are especially involved in youth sports, Humboldt Sponsors and Court Appointed Special

the residential mortgage operation to concentrate on the private lending operation. From 2000 on we have been primarily a private money broker.

We are BRE Brokers with a DBO business plan permit and mortgage pool permit and are active in Northern California markets.


I started working for commercial banks after college graduation in 1968 and worked for 2 major banks and one independent bank until 1987. I have held about every lending position in a commercial bank including chief lending offi ce and after 1987 for about 10 years as a bank director. My lending career began pre RESPA and REG Z, it is suffi ce to say I may have seen it all.

I have never been tested to such a degree as in recent recession but after 46 years in the lending fi eld I can still say I am having fun and enjoy my work.


CMA has provided me with information on how to expand my business models and the ever changing documentation, laws and regulations.

It also has given the opportunity to meet others in our industry professionals from around the state, whether competitors, attorneys, accountants, vendors that I can talk to about loans, servicing, investors or legislation.


[email protected] or 707-544-5696.


I love my cat!

John GrazianoGlenn Goldan

Advocates (CASA). I am the immediate past chair of the Coastal Division Board of Directors for Umpqua Bank; have served on the Board of Directors of the Eureka Rotary and the Eureka Historical Preservation Commission; chaired the Redevelopment Advisory Board for the City of Eureka well as the Private Industry Council for Humboldt County; and, have been president of the Eureka/Humboldt Economic Development Corporation.


To give is to receive. Corny maybe, but true. Folks know how much I give to CMA but it is because I’m selfi shly altruistic – I get much in return.


Call, text or e-mail me. I’m available on my cell at 707.845.4487 or [email protected].


Raised 20 minutes outside of Manhattan and sent to camp in the Poconos for two months every summer I do City as well as I do Eureka!

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


From the President – continued from page 2

Such results, and the collaborative innovation that made them possible, did not happen by accident. CMA was instrumental in the real estate rebound by training its members and facilitating important discussions during private money lender seminars on a quarterly basis. Although these discussions were focused on how we, as private lenders, could best develop our lending practices during troubled time, we also spent time discussing how to help California’s economy and restore the real estate marketplace.

An investment borrower with less than ideal credit wanted to purchase a multi-unit rental property in the central valley. His credit rating, combined with the economic crisis at that time, prevented him from qualifying for a conventional loan. He thought he was out of options, but CMA Board member Steve Belleville of Real Estate Lending Group, Inc. provided a $134,000 amortizing loan for the investor through private money sources. Through this unconventional financing, the borrower was able to purchase the property for investment purposes.

This collaborative approach resulted in a domino eff ect with individual members convincing other members, one by one, to take the plunge into the business-purpose loan marketplace. Extreme trust was required in order for these pioneering

members to openly discuss lending strategies with their peers. I am proud to say that the California Mortgage Association has been actively cultivating this trust among its membership for the last 60 years. We expect that this trust and cooperation will facilitate more collaborative eff orts that will help to overcome whatever hurdles may come before us in the years to come.

Amid the recent recession, one local contractor who specialized in building shopping centers found it impossible to obtain fi nancing. When all standard sources of fi nancing failed him, CMA Board member Pam Sosa of Standard Mortgage Financial Services, Inc. saw his need and arranged several loans for this contractor that enabled him to continue his business and keep his crew employed during these tough economic times.

From its inception, the California Mortgage Association has been so much more than a meager stamp of approval that you can place on your website. It’s more than the obligatory annual membership fee so you can tell clients you are a member of this or that organization. We, as lenders, come together under the California Mortgage Association banner for a purpose. To eff ect change. To ensure our voice is heard. When economic turmoil strikes, or when regulatory hurdles need to be addressed, it is then that we witness the true power of our community known as CMA.

A middle-age couple inherited a property that had a bad loan in place. They wished to sell, but the loan would have made it impossible for them to profi t at all from the sale. The couple sought the assistance of CMA Board member Joff rey Long of Southwestern Mortgage, who originated a $300,000 refi nance loan for the couple. At sale, the couple walked away with substantial proceeds.

These real-life examples all have one thing in common: a CMA member supported by their CMA colleagues and willing to go beyond the services offered by traditional mortgage lenders to find suitable alternatives – even when market conditions are unfavorable. The result of our members’ eff orts over the recent economic crisis has been continued market growth creating an increase in borrowing opportunities for potential investors.

In six decades, the association has driven positive change in the mortgage marketplace and proven itself a pillar of the state’s real estate economy. The actions CMA members took during the Great Recession have raised the status of private lending everywhere. Each CMA member should be proud of their eff orts.

Together, we have a voice, and together, we can eff ect change. we can eff ect change.


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 37

CalBRE Issues Tips to Seniors / Consumers

to Avoid Real Estate Fraud(an optional resource to provide to your clients to help them appreciate

the value of your license)

September, 2014

Tips for California seniors to avoid “targeted” real estate frauds, including

those involving home loans, rentals, timeshares, property recordings, and investments secured by real property.

Click HERE for complete flyer.

{ }

� � � � �

�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


Now Available!CMA Website “Banner Ads”

CMA Headquarters2520 Venture Oaks Way, Suite 150, Sacramento, CA 95833

(916) 239-4080 - phone • (916) 924-7323 - faxwww.californiamortgageassociation.com • [email protected]

� � � � ��

��

��

��

��

��

�

�

��

�

��

��

��

��

��

��

��

� � � �

California Mortgage Association– www.californiamortgageassociation.com –

CMA Web Site Banner AdvertisingAdvertising Policies and Agreement to Advertise

Specifications – Conditions – All requests for advertising must be in writing, for the protection of both the advertiser and CMA. CMA reserves the right to reject any advertising copy or cancel any advertising at any time without penalty to either party at the sole discretion of the California Mortgage Association. CMA website ads rotate randomly at the bottom of website pages.

Payment Terms – Advertisers must submit payment in advance. Ads will begin to run for the specific time frame the advertiser checks below, within 2 weeks upon receipt of the contract and payment. Advertisers must fill out the information below in order for the ad to be placed on the Web site.

Art Specifications – Ad copy will be 83 pixels high and 260 pixels wide and will include a link to your Web site. If you produce the ad, please include pictures and the text you want. Actual size ad at 72 dpi in a jpg. format.

Submission – Please submit your ad to CMA Headquarters via e-mail to [email protected]. Please fax credit card information.

Method of Payment (please check one) –■ Enclosed is Check # _____________________ in the amount of $ ________________

■ Charge my credit card ■ Master Card ■ Visa in the amount of $ _____________(we accept only MasterCard and Visa)

Card Number _____________________________________ Expiration Date_______________________

Name on Card ________________________________ Signature________________________________

Billing Address _________________________________________________________________________

Placing Your Ad –

To place an ad, complete the information below and return to: CMA, 2520 Venture Oaks Way, Suite 150, Sacramento, CA 95833 • (916) 924-7323 – fax

Company Name __________________________ Contact Name________________________________

Address _______________________________________________________________________________

Phone ( ) _______________ Fax ( ) _______________ E-Mail__________________________

■ I agree to place a banner for one year at the rate of $675 ($975 non-member)

■ I agree to place a banner for two years at the rate of $975 ($1,275 non-member)

Today’s Date _________________________

AD SIZES AND RATESAd Size (WxH) 1x Rate 4x RateFull Page (8½”x11”) $525 $450½ Page Horizontal (7¼”x4½”) $335 $285¼ page (3½”x4½”) $175 $150

PLEASE NOTE: if the artwork you provide does not conform to the above specifications, we reserve the right to alter the ad to fit these dimensions.

California Mortgage Association“Points of Interest” Magazine

Advertising Policies & Agreement to Advertise

CMA Headquarters2520 Venture Oaks Way, Suite 150, Sacramento, CA 95833

(916) 239-4080 - phone • (916) 924-7323 - faxwww.californiamortgageassociation.com • [email protected]

Unless otherwise stated, ads for this publication may be Black & White (“Grayscale”) or Full Color.

CONDITIONS1. Advertisers and advertising agencies are liable for all content (including

text, representations, and illustrations) of advertisements and are responsible, without limitation, for any and all claims made thereof against CMA Points of Interest, the association, its officers, agents, or vendors.

2. No advertiser is guaranteed placement, but every attempt will be made to provide the desired position.

3. Publisher reserves the right to revise, reject or omit any advertisement at any time without notice.

4. CMA accepts no liability for its failure, for any cause, to insert advertisement.

5. Publisher reserves the right to publish materials from a previous advertisement if new materials are not received by material deadline.

6. The word “advertisement” will appear on any ad that resembles editorial material.

7. Drawings, artwork and articles for reproduction are accepted only at the advertiser’s risk and should be clearly marked to facilitate return.

8. No verbal agreement altering the rates and/or terms of this rate card shall be recognized.

9. All advertisements, layout and designs produced for the advertiser by CMA’s Graphic Staff will remain the property of CMA.

10. All requests for advertising must be in writing, in the form of this signed contract, for the protection of both the advertiser and CMA.

11. Once an order for advertising is placed, it cannot be withdrawn or cancelled in whole or in part.

12. By signing this contract, advertiser agrees to pay in full for reserved space, even if the ad is not run due to lateness or absence of materials.

ARTWORK SPECIFICATIONSPlease submit ads digitally where possible (PC format, not Mac) either on CD or via e-mail. Such electronic submissions should be in EPS, TIF, or PDF format, including all fonts where applicable, and should be compatible with Adobe Photoshop, Illustrator, PageMaker, InDesign, or Acrobat. We will also accept camera-ready (printed) full-sized images suitable for scanning, at either 133 or 150 line screen. Please see above for specific ad sizes and dimensions. Artwork should be e-mailed to “Advertising c/o CMA” at [email protected] or mailed to:

Advertising c/o CMA2520 Venture Oaks WaySuite 150Sacramento, CA 95833

I will be submitting my ad:❑ Camera-ready by mail❑ Digitally on disc ❑ Via E-mail❑ I need assistance designing a new ad (we will discuss design rates separately)

PAYMENT TERMSAdvertisers are billed after their ad appears. A frequency discount is given to those who agree in writing (ie. this signed contract) to advertise in every issue of the calendar year, or in an equal number of consecutive issues. If the written agreement is not fulfilled, the advertiser is liable for the one-time rate charges. Advertisers who submit an ad contract but fail to submit artwork by the publication deadline will be invoiced.

METHOD OF PAYMENTPlease check one: ❑ Send me an Invoice ❑ Enclosed is check #_______ ❑ Charge my Credit Card ❍ MC ❍ Visa ❍ Amex In the amount of $________Card #: _________________________________________________________ Expiration Date: ___________________________________Print Cardholder’s Name: _____________________________________________ Signature: _________________________________Cardholder’s Billing Address: ________________________________________________________________________________________

(rev.

9/1

4)

PLACING YOUR ADTo place an ad, complete the information below and mail or fax to: CMA, 2520 Venture Oaks Way, Suite 150, Sacramento, CA 95833 • (916) 924-7323 - fax. CMA will not run your ad without this contract.

Name of Company/Organization Being Advertised: ________________________________________________________________Billing Contact: ____________________________________________________________________________________________________Billing Address: ____________________________________________________________________________________________________Phone: ______________________________ Fax: ______________________________ E-mail:___________________________________Agency or Advertising Representative (if different from above): ______________________________________________________Phone: ______________________________ Fax: ______________________________ E-mail:___________________________________Person to Contact with Artwork-specific Questions (if different from above): __________________________________________Phone: ______________________________ Fax: ______________________________ E-mail:___________________________________

I agree to place a _______size ad in the following issue(s), and to be billed at a rate of $___________ per issue:(note: The multiple-issue rate can apply to any consecutive series of issues starting at any point in the year. If you choose the multi-issue rate, please number your first issue “#1” below, and the other issues as they occur chronologically. See condition #5, above.)

_____Winter ‘14/‘15 _____Spring ’15 _____Summer ‘15 _____Fall ‘15 Material Deadlines: 11/28/14 3/06/15 5/08/15 8/14/15

� � � � ��

��

��

��

��

��

�

�

��

�

��

��

��

��

��

��

��

� � � �

MEMBERSHIP APPLICATION

Mission Statement

The California Mortgage Association is committed to providing legislative advocacy, legal resources and education programs for our members to enhance their professionalism. We believe that the public good is served when professionals serve the public.

Regular Member

Any reputable individual, sole proprietorship, corporation or partnership primarily engaged in the business of arranging trust deed loans and/or selling, collecting/servicing trust deed loans in the state of California.

Affiliate Member

Any reputable individual, s o l e p r o p r i e t o r s h i p , corporation or partnership having interest in the above-cited objectives. Affiliates share all privileges of Regular Members, except that of voting.

Mail Application with Payment to:

2520 Venture Oaks Way, Suite 150

Sacramento, CA 95833

If paying by credit card, you may fax to:(916) 924-7323

Questions?Call (916) 239-4080

or visitwww.californiamortgageassociation.com

Power of Membership

Name ________________________________________________ License # (if applicable): _____________________________

Company: ________________________________________________________________________________________________

Address: _________________________________________________________________________________________________

City: __________________________________________________________ State: _____________ Zip +4: _______________

Phone: ______________________________________________ Fax: ________________________________________________

E-Mail: ___________________________________________________________________________________________________

Annual Gross Closing: $ ______________________ Referred by: ________________________________________________

I hereby make application for membership in the California Mortgage Association and pledge myself, if accepted, to abide by the requirements of their By-Laws and Code of Ethics as they are now and as they may be amended. Applicant acknowledges that the use of the Association logo is exclusive to members only, and applicant agrees to cease utilizing the logo upon termination of membership. By becoming a member, applicant authorizes CMA to send information on products and services by phone, fax or e-mail under U.S.C. 47 sec. 227. Applicant certifies that the foregoing information and annual gross closings are correct.

Signature (required) ___________________________________________________

I would be interested in participating in the following focus group:

■ Commercial: For those members whose interest is commercial finance. While we meet as a whole, we have organized into two chapters – Northern and Southern California. Select the location where you do the most lending. ■ Northern CA ■ Southern CA

■ Securities: For those members who are using "non-DRE" methods of raising capital for your loan investments or would like to learn more about securities like pools and permits.

■ Consumer: For those members who are arranging owner-occupied 1-4 unit loans, want to stay up-to-date on the laws and invent new possibilities in this lending arena.

DUES PAYMENT OPTIONS: Dues are based on your annual gross closings. Please select one:■ Regular Member — ($1 million and above per year): $125/month

■ Affiliate Member — Billed Annually: $500/year

■ Educational Member — (Open to non-threshold and sales individuals. Non-voting privileges): $75/month

MAKE CHECKS PAYABLE TO: CALIFORNIA MORTGAGE ASSOCIATION

Credit Card Authorization: ■ VISA ■ MasterCard

Card Number: ________________________________________ 3-4 Digit CVV: __________ Expiration: _______________

Amount to Charge: $________________ Cardholder's Name: __________________________________________________

Carholder's Signature: ____________________________________________________________________________________

Billing Address (if different): ________________________________________________________________________________

City: __________________________________________________________ State: _____________ Zip +4: _______________

CMA offers a convenient automatic payment plan for your membership. Dues will be charged to your credit card on the 1st of each month. The first month's payment or annual dues payment is required to activate your CMA Membership. By signing below you authorize the California Mortgage Association to initiate credit card charge(s) to remain in full effect until written notification from you is received by CMA, in accordance with the terms and conditions contained herein.

Monthly Payment: $ ________________ Signature: _______________________________________ Date: ______________

Contributions or gifts (including membership dues) to CMA are not tax deductible as charitable contributions. Pursuant to the Federal Reconciliation Act of 1993, association members may not deduct as ordinary and necessary business expenses, that portion of association dues dedicated to direct lobbying activities. Based upon the calculation required by law, 6% of the dues payment only should be traated as non-deductible by CMA members. Check with your tax advisor for tax credt/deduction information.

� � � � ��

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �


�

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

Page 41

BENEFITS OF MEMBERSHIP

WELCOME NEW MEMBERSThe California Mortgage Association welcomes the following members who are new to the association:

CMA is one of the fastest growing statewide associations and we thank all our members for their support! You are encouraged to share with your nonmember colleagues all of the membership benefi ts and reasons you

belong to the association. Encourage them to join – applications can be found on the CMA Web site – www.californiamortgageassociation.com, or by calling the headquarters offi ce at (916) 239-4080.

Please remember to share information about the Focus Groups that are provided to members only. Additional information can be found on the CMA website. There are many exciting educational programs being planned and the Fall Educational Seminar in Las Vegas in October, 2014 is the next program being off ered.

Thank you again for all of your support and contribution to CMA and the private loan industry!

Laura CatalinoResidential First Mortgage

18831 Von Karman Avenue, Suite 380Irvine, CA 92612

[email protected] Member

David ClarkDMA Corp.

67782 East Palm Canyon Drive, Suite B104347

Cathedral City, CA [email protected]

Regular Member

Eri KrohSandstone Properties, Inc.

10877 Wilshire Boulevard, Suite 1105Los Angeles, CA 90024


Mark McGuireMCG

548 Main StreetVacaville, CA 95688


Katherine PeoplesHPP Cares

3939 Long Beach BoulevardLong Beach, CA [email protected]

Affi liate Member

Enrique PerezRealty Capital Lending Group

8132 Firestone Boulevard, Suite 284Downey, CA 90241


Noah StreitStreit Lending

15350 Sherman Way, Suite 301Van Nuys, CA 91406


Forest TardibuonoSun Pacifi c Mortgage

858 Second StreetSanta Rosa, CA 95404


Noelle WheelerNationwide Realty Capital, Inc.

26361 Crown Valley ParkwayMission Viejo, CA 92691


FIRST-CLASSU.S. POSTAGE

PAIDSACRAMENTO CA

Permit #1876

California Mortgage Association2520 Venture Oaks Way

Suite 150Sacramento, CA 95833

� � � � ��

��

��

��

��

��

��

��

�

��

��

��

��

��

��

��

� � � �

the power of community - lanternfinancial.com · in your “bang for the buck” decision to join...

Documents